3 Travel Technology, AI-Led Services and Process Automation Software Stocks With a Strong Future Roadmap: Coforge, Mphasis and Newgen Software Technologies
- October 21, 2026
- Posted by: Ankit Jaiswal
- Category: Best Stocks
Coforge, Mphasis and Newgen Software Technologies: ROE of 16.3% to 18.7% and FY22 to FY26 revenue CAGR of 7.5% to 26.3%. Prices as of 20 Oct 2026.
Quick Answer
The three mid-cap IT stocks to watch are Coforge, Mphasis and Newgen Software Technologies. Their return on equity ranges from 16.3% to 18.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 7.5% to 26.3%. Newgen Software Technologies has the highest return on equity at 18.7%, while Coforge has the fastest revenue growth at 26.3% a year. Prices are based on the 20 October 2026 close, and this article is educational, not investment advice.
Mid-cap IT stocks give investors exposure to technology demand through companies that are large enough to win big contracts and focused enough to stay agile. Coforge, Mphasis and Newgen Software Technologies cover a digital engineering firm with strength in travel and financial services, an AI-led services provider and a process automation software company.
This list covers three mid-cap IT stocks with complete current figures: Coforge, Mphasis and Newgen Software Technologies. Every figure comes from the latest reported financials and the 20 October 2026 market close. Companies without complete current figures were left out.
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What Are Mid-cap IT Stocks?
Mid-cap IT stocks are listed technology companies of moderate size that offer software services, digital engineering or their own platforms. Their results depend on deal wins, client spending and the share of recurring revenue.
Mid-cap IT Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| Coforge | 1,925 | 85,024 | 44.3 | 17.5 | 16.3 | 0.08 |
| Mphasis | 2,500 | 47,695 | 25.0 | 17.5 | 17.3 | 0.24 |
| Newgen Software Technologies | 479.1 | 6,835 | 21.8 | 17.5 | 18.7 | 0.02 |
On valuation, all three trade at a P/E above their industry P/E, which reflects the growth the market already expects from them. Readers comparing mid-cap IT stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.
Why Do Mid-cap IT Stocks Have a Strong Roadmap in India?
Mid-cap IT stocks have a strong roadmap in India because businesses worldwide are investing in cloud, data and automation, and mid-size firms are winning a larger share of these programmes.
- Digital spending. Banks, insurers and travel firms are modernising systems and customer channels.
- Deal momentum. Large multi-year contracts give revenue visibility.
- Platform revenue. Software products add recurring licence and subscription income.
Why Coforge Features Among These Mid-cap IT Stocks
Among the mid-cap IT stocks on this list, Coforge is a global IT services company that offers digital engineering, cloud, data and application services to clients in travel, banking, insurance and other industries.
Revenue rose from Rs 6,484 crore in FY22 to Rs 16,476 crore in FY26, a compound annual growth rate of 26.3%. Net profit grew from Rs 715 crore in FY22 to Rs 1,674 crore in FY26, which works out to a compound annual growth rate of 23.7%.
In the June 2026 quarter, revenue grew 49.2% year on year to Rs 5,554 crore, while net profit rose 49.2% to Rs 532 crore. The company has a return on equity of 16.3%, a debt to equity ratio of 0.08 and a market capitalisation of Rs 85,024 crore. The stock trades at a P/E of 44.3, above the industry P/E of 17.5.
Roadmap: The company focuses on large, long-running deals in sectors where it has deep domain strength. A rising share of cloud and data work and the acquisition of a leading digital services business have strengthened its pipeline.
What to watch: Check the order intake and the pace of large deal conversion.
Why Mphasis Features Among These Mid-cap IT Stocks
Among the mid-size technology shares on this list, Mphasis is a Bengaluru-based IT services company that provides applications, cloud, data and consulting services to clients in banking, insurance and technology, especially in the United States.
In the June 2026 quarter, revenue grew 17.1% year on year to Rs 4,467 crore, while net profit rose 10.8% to Rs 490 crore. Revenue rose from Rs 12,122 crore in FY22 to Rs 16,206 crore in FY26, a compound annual growth rate of 7.5%.
Net profit grew from Rs 1,431 crore in FY22 to Rs 1,863 crore in FY26, which works out to a compound annual growth rate of 6.8%. The company has a return on equity of 17.3%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 47,695 crore. The stock trades at a P/E of 25.0, above the industry P/E of 17.5.
Roadmap: The company has stressed an AI-led approach and strengthened its sales relationships with large clients. A broad client base in financial services provides recurring revenue, and its investments in cloud and data skills support growth.
What to watch: Monitor deal wins and client spending trends in banking and financial services.
Why Newgen Software Technologies Features Among These Mid-cap IT Stocks
Among the three companies on this list, Newgen Software Technologies, based in Delhi, offers low-code platforms for content management, process automation and customer engagement to banks, insurers and governments.
The company has a return on equity of 18.7%, a debt to equity ratio of 0.02 and a market capitalisation of Rs 6,835 crore. The stock trades at a P/E of 21.8, above the industry P/E of 17.5.
Revenue rose from Rs 809 crore in FY22 to Rs 1,641 crore in FY26, a compound annual growth rate of 19.4%. Net profit grew from Rs 164 crore in FY22 to Rs 301 crore in FY26, which works out to a compound annual growth rate of 16.3%. In the June 2026 quarter, revenue grew 12.3% year on year to Rs 393 crore, while net profit rose 26.3% to Rs 62.8 crore.
Roadmap: Digital transformation at banks and public sector organisations, plus new artificial intelligence features on its platform, widen its addressable market. A growing share of recurring licence and cloud revenue improves predictability.
What to watch: Monitor deal wins in the banking sector and the growth of recurring revenue.
Coforge vs Mphasis vs Newgen Software Technologies on Key Financials
The table below sets the three mid-cap IT stocks side by side on revenue, profit and margin, using reported figures.
| Company | FY22 Revenue (Rs Cr) | FY26 Revenue (Rs Cr) | Revenue CAGR (FY22-FY26) | FY26 Net Profit (Rs Cr) | FY26 Net Margin |
|---|---|---|---|---|---|
| Coforge | 6,484 | 16,476 | 26.3% | 1,674 | 10.2% |
| Mphasis | 12,122 | 16,206 | 7.5% | 1,863 | 11.5% |
| Newgen Software Technologies | 809 | 1,641 | 19.4% | 301 | 18.3% |
Newgen Software Technologies posts the highest return on equity in this group at 18.7%. Coforge combines the largest FY26 revenue at Rs 16,476 crore with the fastest revenue growth, a 26.3% compound annual rate. A useful habit with mid-cap IT stocks is to check each new quarterly result against the capacity plans the company described earlier.
The June 2026 quarter, the latest reported, gives a fresh read on momentum:
| Company | Q1 FY26 Revenue (Rs Cr) | Q1 FY27 Revenue (Rs Cr) | Year-on-Year Growth |
|---|---|---|---|
| Coforge | 3,723 | 5,554 | 49.2% |
| Mphasis | 3,813 | 4,467 | 17.1% |
| Newgen Software Technologies | 350 | 393 | 12.3% |
Key Risks to Check Before Investing in Mid-cap IT Stocks
Every theme carries risks that deserve a check before any decision. For these mid-cap IT stocks, the main points are: Long-term mid-size technology shares holders usually track revenue growth, margins and cash flow side by side rather than relying on a single ratio.
- Client budgets. Technology spending in the United States and Europe can change with economic conditions.
- Currency moves. Export revenue is sensitive to the rupee and dollar exchange rate.
- Talent costs. Wage inflation and attrition can affect margins.
Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.
Use the Univest Stock Screener to filter mid-cap IT stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Mid-cap IT Stocks
Mid-cap IT stocks suit investors who follow deal pipelines, client mix and margin trends. Coforge, Mphasis and Newgen Software Technologies each offer a different way to participate in global technology spending. Based on the 20 October 2026 close, Coforge trades at Rs 1,925, Mphasis at Rs 2,500 and Newgen Software Technologies at Rs 479.1.
Download the Univest iOS App or Univest Android App to track mid-cap IT stocks, set price alerts and get research-backed stock ideas.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
What are mid-cap IT stocks?
Ans. Mid-cap IT stocks are listed technology companies of moderate size that offer software services, digital engineering or their own platforms. Their results depend on deal wins, client spending and the share of recurring revenue. This list looks at three of them, Coforge, Mphasis and Newgen Software Technologies, using reported FY22 to FY26 financials and the 20 October 2026 closing prices.
Which mid-cap IT stocks are covered in this list?
Ans. This list covers Coforge, Mphasis and Newgen Software Technologies. Based on the 20 October 2026 close, Coforge traded at Rs 1,925, Mphasis at Rs 2,500 and Newgen Software Technologies at Rs 479.1. Their return on equity ranges from 16.3% to 18.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 7.5% to 26.3%.
Why do mid-cap IT stocks have a strong future roadmap in India?
Ans. Mid-cap IT stocks have a strong roadmap in India because businesses worldwide are investing in cloud, data and automation, and mid-size firms are winning a larger share of these programmes. The main drivers are as follows. Digital spending. Banks, insurers and travel firms are modernising systems and customer channels. Deal momentum. Large multi-year contracts give revenue visibility. Platform revenue. Software products add recurring licence and subscription income. Together these factors give the companies on this list a visible path for growth over the coming years.
How has Coforge performed financially?
Ans. Revenue rose from Rs 6,484 crore in FY22 to Rs 16,476 crore in FY26, a compound annual growth rate of 26.3%. Net profit grew from Rs 715 crore in FY22 to Rs 1,674 crore in FY26, which works out to a compound annual growth rate of 23.7%. In the June 2026 quarter, revenue grew 49.2% year on year to Rs 5,554 crore, while net profit rose 49.2% to Rs 532 crore. The company has a return on equity of 16.3%, a debt to equity ratio of 0.08 and a market capitalisation of Rs 85,024 crore. The stock trades at a P/E of 44.3, above the industry P/E of 17.5. Looking ahead, the company focuses on large, long-running deals in sectors where it has deep domain strength. A rising share of cloud and data work and the acquisition of a leading digital services business have strengthened its pipeline.
How has Mphasis performed financially?
Ans. Revenue rose from Rs 12,122 crore in FY22 to Rs 16,206 crore in FY26, a compound annual growth rate of 7.5%. Net profit grew from Rs 1,431 crore in FY22 to Rs 1,863 crore in FY26, which works out to a compound annual growth rate of 6.8%. In the June 2026 quarter, revenue grew 17.1% year on year to Rs 4,467 crore, while net profit rose 10.8% to Rs 490 crore. The company has a return on equity of 17.3%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 47,695 crore. The stock trades at a P/E of 25.0, above the industry P/E of 17.5. Looking ahead, the company has stressed an AI-led approach and strengthened its sales relationships with large clients. A broad client base in financial services provides recurring revenue, and its investments in cloud and data skills support growth.
How has Newgen Software Technologies performed financially?
Ans. Revenue rose from Rs 809 crore in FY22 to Rs 1,641 crore in FY26, a compound annual growth rate of 19.4%. Net profit grew from Rs 164 crore in FY22 to Rs 301 crore in FY26, which works out to a compound annual growth rate of 16.3%. In the June 2026 quarter, revenue grew 12.3% year on year to Rs 393 crore, while net profit rose 26.3% to Rs 62.8 crore. The company has a return on equity of 18.7%, a debt to equity ratio of 0.02 and a market capitalisation of Rs 6,835 crore. The stock trades at a P/E of 21.8, above the industry P/E of 17.5. Looking ahead, digital transformation at banks and public sector organisations, plus new artificial intelligence features on its platform, widen its addressable market. A growing share of recurring licence and cloud revenue improves predictability.
What risks should investors check before buying mid-cap IT stocks?
Ans. Investors should check a few risks before buying mid-cap IT stocks. Client budgets. Technology spending in the United States and Europe can change with economic conditions. Currency moves. Export revenue is sensitive to the rupee and dollar exchange rate. Talent costs. Wage inflation and attrition can affect margins. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.
Is this list of mid-cap IT stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 20 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.
